ISLAMABAD: Exports of services rose for the second month in a row reaching $600.03 million in August, up 2.34 per cent from $586.29m in the same month last year.

The performance of the services sector was quite impressive given the continuous decline in exports of merchandise during the first three months of the current fiscal year after witnessing a contraction in FY23 as well, according to data compiled by the Pakistan Bureau of Statistics.

In rupee terms, the exports of services grew 36.13pc in August to Rs176.294bn against Rs129.503bn in the corresponding month last year.

The export of services saw an increase of 2pc to $1.13bn in July-August against $1.11bn in the same months last year. In rupee terms, they recorded a massive improvement of 33.15pc to Rs326.237bn against Rss245.01bn in 2mFY23.

In FY23, the export of services stood at $7.30bn as against $7.10bn over the preceding year, a growth of 2.78pc.

At the same time, the import of services also increased by 9.11pc to $789.26 m in August from $723.35m over the corresponding month of last year.

The imports of services increased by 24.69pc to $1.598bn in 2MFY24 against $1.28bn in the corresponding period last year.

In FY23, the import of services contracted by 38.04pc to $8.01bn against $12.94bn in the preceding fiscal year.

The trade deficit in services widened by 174.22pc to $463.20m in July-August against $168.91m in the corresponding months last year.

In August, the trade deficit in services increased by 38.06pc to $189.23m against $137.06m over the corresponding month last year.

Services exports include finance and insurance, transport and storage, wholesale and retail trade, public administration, and defence, etc.

The services sector contributed 61pc to GDP in 2020-21 from 56pc in 2005-06.

Published in Dawn, October 5th, 2023